The three major "pain" of furniture people in 2016

With the rapid changes in the furniture market, furniture people have to withstand the pressure from all directions. The development of any industry needs to undergo hardships. The furniture people can only find a suitable development path in the fast-changing market. Everyone analyzes the three " pain " of furniture people in 2016, and hopes to help the furniture people.


Pain point 1: attracting business to face growth bottleneck

In the past two years, with the sluggish market, it is difficult to guarantee the “survival rate” when opening a store. If a batch of dead batches is opened, it is not a good thing for furniture companies. Nowadays, furniture companies are facing a transformation. From the original single investment promotion service providers, industry insiders pointed out that the former appraisal recruiters only look at opening stores, and now they must not only assess the opening of stores but also strengthen the service to dealers, not just "opening stores". Keep the store." This kind of practice is of reference for the industry. At the exhibition, most furniture companies like “hunger marketing” or even “kidnapping marketing”.

At the exhibition, the guests were brought to the factory to visit the products, “good food and good food”, and an excellent distributor with “brainwashing effect” was held to share the meeting, send gifts, send lottery, let the dealer sign the order, and then open the store. This has long been an open secret in the industry. However, such tricks may inevitably appear too "utilitarian". Furniture companies need to find suitable dealers in order to open stores in new markets. Some people call them "find objects", among which dealers can understand products and factory brands. The concept is particularly important, especially in the past two years, business is more difficult to do, opening new stores is more and more difficult to survive, furniture companies should be more cautious. Relying on investment for growth, it will inevitably require transformation.

Pain point 2: The stock is still high and is "supported to die"

In addition to the “pain point” of investment, the high inventory is just as daunting as “chronic disease”.

Some people say: "Many companies are not starving to death, but when they do business well, they are desperate to make stocks and finally die." High stocks have now become a big symptom of the furniture industry, even because of the high inventory. Digestion, there is a group of companies that specialize in acquiring factory inventory. This part of the “drilling” company generally buys inventory from the factory at a discount of 2 or 30%.

For the inventory problem, the industry said that if the factory's production cycle is too long to produce inventory, controlling the production cycle is equal to controlling inventory. In fact, the inventory problem of the furniture industry has been in sight since last year. Most furniture companies have to sell inventory products at low prices to alleviate the problem of tight capital chain. From last year to now, they have gradually collapsed due to the break of the capital chain. The factory, visible to solve the inventory problem, has been "imminent."

Pain point three: single-brand operation such as "single bridge"

People familiar with the furniture industry know that a large group of companies generally operate several brands at the same time, which is undoubtedly a “single bridge” for a single brand. A company that operates a single brand said that since the beginning of last year, it has gradually felt that a single brand is not working well. In the past, it was very optimistic to focus on product investment by single brand. However, it was difficult to attract investment last year. When exhibiting, dealers will be confused, why have they been doing so for many years? There is not much change. If we continue to operate a single brand, if the annual sales volume does not exceed 3 million, it is very difficult to survive. The single brand operation will encounter bottlenecks for 8-10 years, which is extremely unfavorable for opening new product series in the future.

If a single brand operates for a long time, it will be more and more difficult if the company wants to develop into multiple brands. However, if you abandon the original corporate strategy and choose multi-brand operation, you will also need courage. In the past few years, many brands have helped the company expand its territory. And now many brands are also facing a lot of pressure. Experts predict that the sluggish real estate market in 2016 will further affect the home building materials industry. However, at present, no enterprise can truly achieve breakthroughs in the “pain point” brought about by “turbulent flow” in the market.

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